Executive Intelligence

In this excerpt from Executive Intelligence, Justin Menkes introduces the concept of executive intelligence, a new theory outlining the cognitive skills that are specific to the business environment.

Jim Collins, one of the world’s most influential management researchers and commentators, calls them the “right people.” Jack Welch, arguably the most successful CEO of the twentieth century, says they’re “stars,” while famed author and professor Peter Drucker pictures them as “masterful conductors.” These experts are describing the people who truly determine whether an organization thrives or fails.

But what makes these “star” executives so effective? If we knew, we could identify these traits in others and, more important, develop them within ourselves. The problem is that nobody has accurately identified the fundamental characteristics that make someone a “masterful conductor.”
theories on leadership skills
There have been literally hundreds of books and thousands of theories that have tried to answer this question. At various times we’ve been told that the secret to management success is the ability to: lead, anticipate change, be entrepreneurial, break all the rules, communicate, be compassionate, compensate for one’s weaknesses, foster diversity, express empathy, encourage teamwork, get everyone on the same page, introduce innovation, practice intrapreneurialism, manage logistics, hone marketing expertise, master the value chain, play to one’s strengths, put employees first, put employees second (and the customer first), stick to one’s knitting, develop subservient leadership, instill values, communicate a vision… and that’s just a partial list.

It’s a mind-numbing inventory, yet it does nothing to illuminate the core drivers of success. As a result, these theories constitute a costly distraction from identifying what really causes leadership excellence. So, if we are to effectively populate our executive ranks with the “right” people or if we are to become one of them ourselves, we need to discover the essential components that make someone a “star.”
a new theory of intelligence
It turns out there are specific cognitive aptitudes that to a large extent determine whether an executive succeeds or fails. And it is these aptitudes that form the foundation of a new theory of intelligence. Not the type of intelligence that determines success in school, but rather the cognitive skills specific to the business environment. We call this new theory Executive Intelligence.

In today’s workplace, an individual cannot become a star executive without possessing this unique type of business “smarts” that we call Executive Intelligence. Historically, business “smarts” has been a bit like the word “indecency.” As Supreme Court Justice Potter Stewart once said when asked to define the latter, “I can’t tell you what it is, but I know it when I see it.” Still, we have all caught glimpses of this kind of intelligence, even in everyday situations, as the following example illustrates.

you use it every day
A truck was jammed underneath a highway overpass, and the fire department and a tow-truck driver were attempting to free the vehicle. But despite their earnest efforts, the truck remained stubbornly lodged. A motorist, annoyed by the delay, approached the fire chief and asked what the problem was. “The bridge is not high enough,” the chief responded impatiently, “so the truck is wedged, and we’re having trouble getting it out.”

The gentleman responded, “It seems like the problem is that the truck is not low enough to get through.” The fire chief laughed. “Yes, I guess that’s another way to say it.” The motorist persisted, “What I mean is, why don’t you make the truck lower by letting the air out of the tires.” Ten minutes later the truck was freed from the tunnel and the traffic was moving again.
demystifying executive intelligence
This kind of logic often appears to observers to be as clever as a magic trick -- a mysterious act with an impressive outcome. But just seeing the result does not get us any closer to understanding how the feat was accomplished. And if you do not know how the trick was performed, you cannot replicate it or teach it to others.

To create a useful understanding of the concept of business “smarts,” we need to pull back the curtain and show how the magic trick is done. What’s more, we need a consistent and reliable way to recognize and measure this kind of intelligence if we are to develop it in ourselves and also ensure that decision-making responsibilities are assigned to those best qualified to handle them.
how is it measured?
So how do we define Executive Intelligence? In its simplest form, it is a distinct set of aptitudes that an individual must be able to demonstrate in three central contexts of work: the accomplishment of tasks, working with and through other people, and judging oneself and adapting one’s behavior accordingly.

On the job, executives are constantly pursuing a variety of goals. They must decide which tasks to accomplish, in what order to do them, and how best to carry them out. They must find ways to meet their goals through the efforts of and cooperation with other people. And always they must actively evaluate themselves, identify their own errors, and make adjustments to correct them.
a blend of critical aptitudes
The more proficient an individual is in all three of these areas, the higher his or her level of Executive Intelligence. Obviously, Executive Intelligence does not consist of a single ability or isolated skill. Rather, it is a blend of critical aptitudes that guide an individual’s decision-making process and behavioral path.

Executive Intelligence has its roots in what is commonly known as critical thinking, but it is not the same as the abstract-logic and reasoning skills often associated with that subject. Instead, it is an expanded and applied type of critical thinking; specifically it is how an individual skillfully uses the available information as a guide to thought and action.
the new intelligence quotient
This type of intelligence permeates every aspect of managerial work. A close analysis reveals a set of consistent, interrelated skills that form the very foundation of smart executive behavior. In a sense, the theory of executive Intelligence pulls back the curtain and reveals the magic behind exceptional leadership performance.

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